Bearish momentum intensifies, buyers rejected by the 20-day SMA

• The EUR/GBP pair extended its losses on Monday, declining to 0.8425.
• Technical indicators, including the RSI and MACD, suggest that selling pressure is increasing.
• Bulls failed to conquer the 20-day SMA which paved the way for the downside.

In Monday’s session the EUR/GBP and declined by 0.15% to 0.8425. The pair has been trading sideways in a narrow range over the past sessions, with no clear directional bias. However, the latest price action suggests that selling pressure is increasing after the 20-day Simple Moving Average (SMA) rejected the buyers at 0.8445.

The Relative Strength Index (RSI) is currently at 43 and its slope is declining sharply, suggesting that selling pressure is rising. The Moving Average Convergence Divergence (MACD) is flat with a green histogram, indicating that buying pressure is flat. The overall outlook is mixed, with the RSI suggesting that selling pressure is rising and the MACD suggesting that buying pressure is flat leaving the cross exposed to further declines.

EUR/GBP daily chart

The EUR/GBP pair has been consolidating within a narrow range for the past few trading sessions, fluctuating between 0.8425 and 0.8450. This consolidation is indicative of a lack of clear directional bias in the near term. If the pair manages to break below the immediate support level of 0.8425, it could potentially target 0.8410 and 0.8400. Conversely, a break above 0.8445 (20-day SMA) could open up further upside potential above 0.8470.